clarification of their intentions ..."; but as you know, I have from time to time wondered whether, when the moment of negotiation came,the Swedes would not seek to broaden the scope of the discussions and we
have speculated whether the fact that their statistics
covered a range of categories not all previously restrained did not indicate this very intention.
It seems to me now that in the latest Hong Kong telegram there are indications at least that in a number of categories imports from Hong Kong are indeed damaging the market.
3. I imagine that when you examine telegram no. 301 you will give special attention to the final sentence of paragraph 2 where we are told that Hong Kong propose to hold the Swedes to their memorandum "unless it is
necessary tactically". I do not fully understand this but it seems to me that subject to clarification of Hong Kong's proposals it might not be wise to depart from the scope of the memorandum at any one point, whatever the tactical advantage, because this would make it harder to adhere to it at every other point.
4.
I should be grateful for your very urgent consideration of this telegram so that we may agree on a suitable reply.
5.
I am not sure to whom you may wish to send
copies of this letter inthe Board of Trade. But I enclose copies for any distribution you may wish to give it. I am copying myself to Miss Welch in Industries Division and within the FCO to Howard Collings and
John McKelvie.
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